Posted on 07/13/2011 7:55:05 AM PDT by markomalley
House Majority Leader Eric Cantor (R-Va.) said that President Barack Obama torpedoed a deal to raise the debt ceiling by demanding an additional $1 trillion in tax hikes in exchange for comprehensive tax reform.
Speaking to an audience at the U.S. Chamber of Commerce on Tuesday, Cantor said that Obama had offered to “de-couple” tax hikes on those making $250,000 or more in exchange for lowering tax rates later through comprehensive reform.
“As you know, the Speaker [John Boehner] ended the talks because the president insisted on raising the tax rates,” Cantor said. “From what I know – and there’s not a lot of detail that I do know about – that deal was premised upon decoupling of the Bush tax rates.”
“This was the notion that somehow you’re going to make permanent the rate at 35 percent for those [earning] under $200,000 [per year] and for everybody – individually under $200,000, couples $250,000 and over – you’re going to let those rates expire in the hopes that you’re going to get tax reform at a date certain and somehow that date certain is going to produce comprehensive tax reform that’s going to yield a lowering of the rates.”
However, Cantor said, Obama also demanded an additional $1 trillion in unidentifed tax hikes, forcing House Speaker John Boehner (R-Ohio) to walk out of the talks.
“The problem is, the president is also requesting an additional $1 trillion-plus in new revenues, which CBO right away scores as a tax increase.” (The CBO is the Congressional Budget Office.)
Cantor called Obama out on the latter’s stated desire for a grand bargain on the debt ceiling, saying that despite the rhetoric, Obama had yet to produce any details on what type of bargain he would accept.
“So, I’d like to see the specifics of what the president says his plans are,” Cantor said. “The Biden-yielded specifics, they were talked about in that meeting [July 11] and were quickly dispersed by the White House as to what the details were – again, those were the details that were discussed and identified [as] bipartisan under the Biden talks.”
In other words, the deal Obama offered Boehner would have allowed the top tax rates to rise as scheduled in exchange for Obama’s support of comprehensive tax reform, lowering all tax rates but closing loopholes and eliminating deductions. Obama also wanted at least more than $1 trillion in new unspecified tax increases.
Obama, according to Cantor, did not offer Boehner specifics on what that comprehensive tax reform might look like, only a promise that it would pass in the future, prompting Boehner to leave the talks.
The debt limit, or debt ceiling, is the amount of money the federal government is legally allowed to borrow. The current ceiling, which was hit on May 16, is $14.29 trillion. The talks between congressional leaders and the White House have concerned how to go about raising that debt ceiling another $2.4 trillion, with agreements on budget cuts and future spending, as well as the tax increases the president and the Democrats are advocating.
Congress is expected to vote on a potential debt limit increase before Aug. 2, 2011.
Obama is just wagging the dog because of Fast and Furious, fake BC, ignoring the law, low approval numbers.........
The bottom line is that the GOP is going to have to find a way to call out Obama and Reid as to what spending cuts, if any, they will support. As of this writing, the MSM is shamelessly allowing Reid and Obama to get away with murder by not demanding that they publicly disclose their spending cuts. Hell, BO hasn’t even submitted a second budget (other than a speech) and the Senate Dems haven’t passed a budget in two years.
Life is unfair, yes, but this truly sucks. It’s beyond any pretense of media objectivity.
We also need Boehner and McConnell to turn up the heat rather than run to the corner and hide.
What is this janitor doing in the White House?
I don’t know what it is about Cantor, but I get an itchy feeling between my shoulderblades knowing that guy is in a position to make a deal with the Dear Leader.
I don’t trust him. I may be proven wrong, but the track record of these spineless weasels ain’t too good. McConnell’s backstab was just the first. The next will come from our House champions...
When are these imbeciles going to figure out that we will not stand for $1 in tax increases! We are taxed too much already! Cut spending!
“What is this janitor doing in the White House?”
Janitor from the Liquor store.
“It’s beyond any pretense of media objectivity.”
Pravda, it’s not the MSM, it’s Pravda now.
Fox may have it’s faults, but they actually ask real questions from time to time. Bill Hemmer just skewered Xavier Becerra. Becerra stuck to all the Dem talking points... evil Republicans won’t balance anything, corporate jets, etc. Hemmer pointed out no Dem budget in over 800 days of control, the jet loophole is pennies in the grand scheme.
Those friggin politicians, I don’t think there’s a one of them that can tell the truth. And with Pravda not pressing the Dems, it’s a recipe for disaster.
Every time I read this stuff my mind goes back to those that wouldn’t go for McNut. How is America now with your no vote or just staying home. For the hell of it, why don’t the same bunch do it in 2012. Who gives a crap about your freedom or standard of living anyway? Even now most of the GOP don’t.
“We also need Boehner and McConnell to turn up the heat rather than run to the corner and hide.”
The Republicans had a great opportunity to clearly reframe the debate after the holiday. There is no point in lengthy closed door negotiations with an unserious partner like Barry. $2 billion in cuts? Unbelievable!
Boehner should have proposed a public debt summit. He needed to get these useless dim clowns taking some hard hits on TV.
But they have fumbled away a week and half and now everything is muddled up with Barry’s threats and McConnell’s plan. Not going in the direction we need.
Why didn’t Cantor come out and say this on camera in front of the White House?
That is exactly what the McConnell proposal does, force the president make the cuts he will accept in exchange for raising the debt the same amount, or rather it is an agreement to put the President’s proposal to a vote, but the cuts must come from Obama.
It’s a stop gap measure which puts the ball back into Obama’s court, not once, but three times between now and the election. If Obama turns it down, it makes him look bad, like he is not negotiating seriously.
Then when we get rid of Obama, we get rid of his Czars, his Commissions, his Executive orders and all the people who staff them. Clean house and start over.
I don’t think that McConnell’s plan is so bad. If Obama and the Democrats turn it down, they look unserious about negotiating, about compromising.
The McConnell deal forces Democrats to make the hard choices that they have so far resisted making.
I don’t think that they are going to take it, but if they don’t they cannot blame the shut down on Republicans.
It definitely just kicks the can down the road, but if Obama is so worried about defaulting on the debt, it’s the only option left for him.
McConnell’s suggestion was a brilliant bluff, designed to throw the WH into confusion. I was very much impressed at the gamesmanship.
What you said, and the Dems know it. “I see your bet and raise it.”
McConnell’s move may have merit, but you must admit that it has been a shambles in terms of getting his ducks in a row and privately consulting with his House counterparts - let alone conservative leaders.
The Obama media are having a field day with the apparent GOP fracture, and I am livid that McConnell so stupidly peddled this idea without adequate preparation.
My ten year old could do a better job in project management.
Rush is going on a rant against the McConnell proposal, but as I understand it, it would still have to pass the House, so it wouldn’t happen anyway.
I don’t know exactly what Rush is talking about. Yeah, I thought that it showed weakness at first, but after I realized that it would still have to pass the House, I figured it wasn’t so bad.
I believe Cantor wants to replace Boehner as Speaker and if this deal ends up favoring Obama and the Dems as it appears to be headed then he may very well get his wish.
I agree with you.
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